Question: Elaborate this statement? Knowing the contribution margin ratio allows you to know the contribution margin generated by one dollar of sales. Knowing the per-unit contribution

Knowing the contribution margin ratio allows you to know the contribution margin generated by one dollar of Elaborate this statement?

Knowing the contribution margin ratio allows you to know the contribution margin generated by one dollar of sales. Knowing the per-unit contribution margin allows you to know the contribution margin generated by one unit of sales. Knowing the contribution margin and total fixed costs enables you to quickly determine whether you can breakeven.

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The contribution margin ratio is the ratio of the contribution margin to sales revenue It represents the percentage of each dollar of sales that contr... View full answer

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